September 15, 2024
Weekly: Latest Updates and Insights
Harris-Trump Debate Skips Cryptocurrency Discussion Amid Election Controversy: The first presidential debate between Donald Trump and Kamala Harris notably omitted any mention of cryptocurrency, despite its significance in the upcoming election. While Trump is perceived as more favorable toward the crypto industry, Harris has begun engaging with the sector, leaving the future regulatory landscape uncertain.
Gemini Report Indicates Steady Crypto Adoption Signals Market Rebound: A recent survey by Gemini reveals that cryptocurrency adoption has remained stable in the U.S. and U.K., with 21% and 18% of individuals holding digital assets, respectively, despite regulatory concerns. The report suggests that the retail crypto market is poised for a rebound, as nearly two-thirds of respondents view crypto as a long-term investment, and many plan to allocate 5% or more of their portfolios to digital assets.
SEC Imposes Nearly $4.7 Billion in Crypto Fines in 2024, Marking a 3,000% Increase: The U.S. Securities and Exchange Commission (SEC) has levied nearly $4.7 billion in fines against the crypto industry in 2024, a staggering increase of over 3,000% from the previous year, primarily driven by a $4.47 billion settlement with Terraform Labs and its former CEO Do Kwon. This record-setting enforcement activity reflects a strategic shift towards targeting fewer but larger cases, aiming to establish significant precedents within the industry.
U.S. Urges Nigeria to Release Binance Employee Amid Health Concerns: The U.S. government is pressing Nigeria for the humanitarian release of Binance employee Tigran Gambaryan, who has been detained since February and is suffering from severe health issues, including malaria. U.S. Secretary of State Antony Blinken has raised the matter with Nigerian officials, emphasizing the need for Gambaryan’s release due to inadequate medical care during his imprisonment.
Hong Kong Explores SFC Involvement in Regulating OTC Crypto Trading: Hong Kong is considering the inclusion of the Securities and Futures Commission (SFC) in the regulation of over-the-counter (OTC) cryptocurrency trading services, alongside the Customs and Excise Department, to enhance oversight and clarity in the industry. This potential shift follows increased scrutiny of the OTC market after the JPEX scandal, which highlighted significant risks associated with physical OTC shops.
Survey Reveals Stablecoins’ Shift from Speculative Trading to Real-World Applications: A recent survey conducted by Visa, Brevan Howard, and Castle Island Ventures indicates that stablecoins are increasingly being utilized for practical purposes beyond speculative trading, with $2.6 trillion settled in stablecoins in the first half of 2024. The survey, which included 2,500 participants from emerging markets, found that stablecoins are now commonly used for currency conversion, remittances, and everyday transactions, highlighting their growing importance in financial systems where traditional banking is less accessible.
Uniswap’s Market Share Declines to 36% as DEX Competition Intensifies: The decentralized exchange (DEX) sector is witnessing increased competition, with Uniswap’s market share dropping from over 50% in October 2023 to 36% as of September 2024, amidst rising trading volumes that reached $140 billion last month. New challengers like Aerodrome and Orca are capitalizing on Uniswap’s decline, indicating a shift towards a more diverse and innovative DEX landscape.
ParaFi Capital to Tokenize $1.2 Billion Fund on Avalanche Blockchain:
ParaFi Capital is set to tokenize a portion of its $1.2 billion venture capital fund using the Avalanche blockchain, allowing for a minority stake to be traded on the Securitize platform. This move marks a significant step in integrating blockchain technology into traditional asset management, enabling broader access to investment opportunities previously limited to institutional investors.
Vitalik Buterin Sets New Standards for Layer-2 Projects, Demands Stage 1+ Compliance: Ethereum co-founder Vitalik Buterin has announced that starting next year, he will only publicly endorse Layer-2 (L2) networks that achieve “stage 1+” decentralization, emphasizing the importance of security and governance in these projects. This decision reflects a significant shift towards promoting only those L2s that meet his established criteria for maturity, which includes a robust fraud-proof system and a governance structure that ensures sufficient decentralization.
Fundraising:
Fuse Secures $12M to Propel Project Zero in Renewable Energy: Fuse has announced a $12 million funding round to enhance its role in Project Zero, a decentralized initiative aimed at addressing the significant challenges in energy coordination. Founded by former Revolut employees Alan Chang and Charles Orr, Fuse operates utility-scale renewable energy projects and aims to transform energy consumption patterns while facilitating the integration of decentralized energy resources through innovative technologies and incentive structures.
Binance Labs Invests in OpenEden to Enhance Tokenization of Real-World Assets: Binance Labs has made a strategic investment in OpenEden, a platform focused on tokenizing real-world assets (RWAs) to facilitate a new financial ecosystem. OpenEden aims to democratize access to real-world yields through its innovative tokenization technology, highlighted by its tokenized U.S. T-Bill Fund, which has received an “A” rating from Moody’s and achieved over $100 million in Total Value Locked, positioning itself as a leader in the burgeoning RWA market.
Binance Labs Invests in Five Promising Projects from BNB Chain’s MVB Season 7: Binance Labs has invested in five standout projects from BNB Chain’s MVB (Most Valuable Builder) Season 7, which saw over 700 applications with a rigorous acceptance rate of less than 2%. The selected projects, including Aggregata, Blum, Opinion Labs, SideKick, and Vooi, are recognized for their innovative contributions to the Web3 ecosystem, benefiting from personalized mentorship and access to resources aimed at accelerating their growth in the decentralized finance landscape.
Fabric Partners with Polygon Labs to Launch Verifiable Processing Units for ZK Technology: Fabric has teamed up with Polygon Labs, which is investing $5 million to acquire its Verifiable Processing Units (VPUs), designed to enhance the performance of zero-knowledge (ZK) technology in crypto and Web3 applications. This collaboration aims to provide the necessary hardware to support real-time proving and efficient verification of ZK proofs, thereby accelerating the development of ZK-powered protocols across the Polygon ecosystem.
Tune.fm Secures $50 Million Investment from Global Emerging Markets: Decentralized music streaming platform Tune.fm has raised $50 million from Global Emerging Markets, increasing its total funding to $80 million. The investment will enhance liquidity for its JAM token, which rewards artists and users, while the platform continues to offer music streaming services alongside an integrated NFT marketplace, enabling artists to earn micropayments for their streamed music.
Huma Finance Secures $38 Million to Expand Tokenized Asset Platform: Huma Finance has successfully closed a $38 million investment round, which includes $10 million in equity and $28 million in yield-bearing real-world assets (RWAs), to enhance its payment-financing platform built on tokenized RWAs. The funding, led by Distributed Global with participation from several notable investors, will facilitate the platform’s expansion to the Solana blockchain and Stellar’s Soroban smart-contract network, leveraging multitranche bonds wrapped into exchange-traded products under Swiss DLT laws.
Legend of Arcadia Raises $4 Million in Seed Funding: Web3 game developer Legend of Arcadia has successfully raised $4 million in seed funding to advance its gaming platform. This investment will support the development of innovative gaming experiences within the decentralized ecosystem, further enhancing the integration of blockchain technology in gaming.
Solana-Based Creator Platform DRiP Raises $8 Million in Seed Funding: DRiP, a creator engagement platform built on Solana, has successfully raised $8 million in a seed funding round led by NFX, Coinbase Ventures, and Progression, a fund established by former TikTok executives. The funds will be utilized to launch DRiP’s mobile app and enhance its creator tools, aiming to accelerate creator onboarding and expand platform features for user engagement.
Blocksense Raises $4 Million to Transform Decentralized Data Infrastructure: Blocksense, a newly established innovator in Schelling coin oracle services, has successfully raised $4 million in a funding round led by Permutation, with participation from notable investors including a16z Crypto Startup Accelerator and Public Works. The investment will enable Blocksense to accelerate the deployment of its ZK-rollup architecture and permissionless oracle feeds, addressing critical challenges in the oracle space while scaling operations and launching its mainnet.
Moku Secures $5.35 Million Investment to Empower Gamers and Creators: Moku has announced a significant milestone by securing a $5.35 million investment led by Sky Mavis and a16z Games, with additional support from various notable investors and angel backers. The company aims to empower gamers and creators by establishing a new ecosystem that allows them to co-publish games and share in the success, leveraging the potential of web3 technology.
Fountain Secures $3.5 Million Seed Funding to Enhance Web3 Operations: Fountain has announced the successful completion of a $3.5 million seed funding round aimed at developing a new Web3 operating system designed to facilitate institutional adoption of crypto assets and automate DeFi workflows. The funding will support its private beta phase, which has already attracted interest from major market makers and hedge funds, following its graduation from the Alliance crypto incubator.
Ammalgam Secures $2.5 Million Seed Round to Transform Decentralized Lending: Ammalgam has successfully closed a $2.5 million seed funding round co-led by Lightspeed Faction and Framework Ventures, with participation from various notable investors and angel backers. The funds will be used to enhance the protocol’s growth and development, focusing on capital efficiency in decentralized finance through innovative lending methods and advanced visualization tools for users.
Castile Launches Open Beta as Nytro Lab Secures $25 Million in Funding: The roguelike RPG Castile has officially launched its monthlong open beta, coinciding with a rewards campaign that will distribute 10 million CAST tokens ahead of the token’s official launch. This development comes as its developer, Nytro Lab, raises an additional $8 million, bringing its total funding to $25 million, aimed at enhancing the game’s features and user experience through innovative mechanics and NFT integration.
Web3 Foundation and Scytale Lead $2.5 Million Seed Investment in Hyperbridge for Blockchain Interoperability: Hyperbridge has successfully secured a $2.5 million seed investment led by the Web3 Foundation and Scytale Digital, marking a pivotal moment in its mission to enhance blockchain interoperability. This funding will support the development of its cross-chain communication protocol, which has already gained traction within the Polkadot ecosystem and is recognized for its high economic security and integration capabilities.
Wingbits Secures $3.5 Million to Enhance Blockchain-Based Flight Tracking Platform: Stockholm-based startup Wingbits has raised $3.5 million in an oversubscribed seed funding round led by US venture capital firms Borderless Capital and Tribe Capital, with support from Antler. The funding will help expand its blockchain-based flight tracking platform, which incentivizes enthusiasts to improve data reliability and coverage by rewarding them for hosting tracking antennas and contributing data.
Infinit Raises $6 Million to Enhance DeFi Abstraction Protocol: Infinit has successfully secured $6 million in a funding round led by Electric Capital, Mirana Ventures, Hashed, and Arthur Hayes’ family office, Maelstrom. The funds will be utilized to improve its infrastructure, enabling a more streamlined experience for developers building decentralized finance (DeFi) applications across multiple blockchain networks.